Telco 2.0™ Executive Brainstorm

Created by
STL Partners Ltd

Platinum Partners

Ericsson

Cisco

Gold Partners

Connectiva

Credit Suise

Intel

Oracle

Ubiquisys

Silver Partners

Aricent

Blyk

Globecast

Bronze Partners

Huawei

Juniper

In partnership with

Bain & Company

Day 1 - 27th October 2010: Telco strategic issues and opportunities

Overview

For the last 4 years the Telco 2.0 Initiative has been researching and promoting new business model opportunities at the intersection of the telecoms, media and technology sectors. Based on latest research and analysis by the Telco 2.0 team and our partners, and outputs from our last ‘Executive Brainstorm’ in Europe the first day of this event will examine in detail a set of the key strategic business model issues and opportunities facing the Telecoms industry. It will cover:

Format

The ‘Executive Brainstorm’ uses a special interactive process called ‘Mindshare’. This mixes short, specially briefed stimulus presentations, with newly commissioned market analysis, interactive technology to enable everyone’s voice to be heard and to support voting on key issues, and panel discussions with leading experts.

AGENDA

0745 Registration & Continental Breakfast

0830 Welcome, Introductions & Warm Up

  • Chris Barraclough, Managing Director & Chief Strategist, Telco 2.0

0900 Disruptive strategies and business models:

It is now widely accepted that the existing Telco 1.0 business model is under pressure but how should the Telecoms industry think about developing new business models with new customers, revenue sources, cost profiles?  What should operators be doing to negate threats and exploit potential ‘Telco 2.0’ opportunities? In this session, STL Partners/Telco 2.0 Initiative will share extracts from recent research on the ‘Roadmap to Telco 2.0’ which explore what different types of operator should be doing in each region to maximise their chances of success in a Telco 2.0 world. Operators covered include multi-national Tier 1 players, Tier 2 ‘followers’, Tier 3 local competitors, enterprise and wholesale focused operators and incumbents operating in smaller geographies.

Hypothesis being tested

  • Traditional voice and messaging services are being replicated or bettered by freemium internet services
  • A future based on access and connectivity is one of low-growth and low-margin for the Telecoms industry
  • Fresh thinking is needed to determine how the Telecoms industry can add more value and what specific steps are required to deliver this
  • Different strategies will be required for different types of operator
  • Selective collaboration among operators will be required to realise success

Key questions to debate

  • What principles should the industry consider when developing new strategies and business model?
  • What specific opportunity areas will drive value creation and growth in the next 5 years?
  • What should the industry do more of/less of/differently to exploit the opportunity areas?
  • Where and how should operators collaborate?
  • What should different types of operators be doing to mitigate risk and maximise their chances of success?

Presenters and Panellists
Short stimulus presentations x 3, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’. Stimulus Presenters:

  • Steve McGaw, SVP Corporate Strategy, AT&T
  • Mark Simonian, Global Head, TMT, Credit Suisse
  • Philip Laidler, Consulting Director, Telco 2.0 Initiative

Panellists:

  • Steve McGaw, SVP Corporate Strategy, AT&T
  • Mark Simonian, Global Head, TMT, Credit Suisse
  • Philip Laidler, Consulting Director, Telco 2.0 Initiative
  • Rick Qualman, VP Strategy, Global Telecoms Industry, IBM

Telco 2.0 background reading:

 

1030 Break

1100 The Economics of Broadband & ‘Net Neutrality 2.0’

Defining an end state for broadband networks (fixed and mobile) that adds most value to all stakeholders in the ‘digital economy’
What are we building our broadband networks for? How will the multiple 4G networks under construction complement existing fixed and cable networks? What business models will enable the ‘digital economy’ to thrive, for the benefit of consumers, citizens, government and businesses?

Answers to these questions are not clear. As a result debates on ‘net neutrality’ are not as sophisticated or productive as they should be.

Within this vacuum, different approaches to net neutrality are being developed and adopted by regulators around the world, ranging from a laissez faire approach that allows telcos to discriminate between applications and even individual sites and providers and shape their traffic exactly as they please, to a complete ban on all traffic management and prioritisation options. Debate on the issue is fierce and often bitter as the effect on business model development, costs and revenues is expected to be severe.

Based on a set of use cases indicative of the different business models that could be created and supported using prioritisation, traffic shaping and policy management techniques, this session will explain the implications of different net neutrality regulatory approaches on these and identify ways to mitigate the impact of regulation.

Hypothesis being tested

  • Multiple mobile broadband and fibre networks are being built without a clear enough understanding of the ideal ‘end state’ in terms of business models that will be attractive to different stakeholders and commercially sustainable for infrastructure providers.
  • As a result Net Neutrality debates are being conducted in a semi vacuum.
  • The ability to prioritise, constrain, and shape traffic enables new business models for all players in the telecoms, media and technology sector, which can be highly beneficial to consumers and citizens as well.
  • There are different models that telcos can adopt depending the severity of legislation
  • There are alternative technologies that can provide telcos with the flexibility to support some of new business models if net neutrality regulation makes shaping and management impossible.

Key questions to debate

  • What is the ideal ‘end-state’ for broadband networks?
  • What are the new business models enabled by prioritisation, traffic shaping and policy management?
  • How important are these business models to the development of Telco 2.0 businesses? How much flexibility and control do telcos need in order to support these?
  • What are the possible benefits of these models for content owners, application service providers, public service providers and consumers?
  • What are acceptable use cases for techniques such as DPI and policy management? Does prioritisation of one service/application automatically deprioritise others?
  • At what point does net neutrality regulation have a severe impact on business model development?
  • Are there alternative technology solutions that comply with regulations but offer telcos flexibility? Which models do these support?

Presenters and Panellists
Short stimulus presentations x 4, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters:

  • Bernd Schlotter, Partner, Bain
  • Martin Harriman, EVP Ecosystem Development, LightSquared
  • Chris Gilbert, CEO, Ubiquisys
  • Ali Shah, Director Broadband Strategy, Ericsson

Panellists:

  • Scott Wallsten, Vice President for Research and Senior Fellow, Technology Policy Institute
  • Chris Gilbert, CEO, Ubiquisys
  • Martin Harriman, EVP Ecosystem Development, LightSquared
  • Bernd Schlotter, Partner, Bain
  • Ali Shah, Director Broadband Strategy, Ericsson

Telco 2.0 background reading:

 

1230 Free Broadband, Funded by Apps

  • An innovative new ‘Telco 2.0’ concept to bridge the ‘digital divide’?

Presenter: Thomas Sachson, CEO, Box Top Solutions Inc

Telco 2.0 background reading:

 

1245 Lunch

1345 Sweating the Assets: Platform Services, Cloud/Infrastructure Services, M2M - strategy, case studies and use cases

For the past couple of years, Telco 2.0 has promoted the opportunity for the Telecoms industry to leverage network, IT and device assets to protect existing value sources and create new ones. We are now starting to see specific case studies and use cases that endorse this vision. Sometimes these case studies come from individual companies and other times they represent more collaborative efforts. Telco 2.0’s Best Practice Live! virtual event has 40 case studies and use case examples. Here we are presenting some of the best examples of Telco 2.0 opportunities in the following areas: Platform Services, Cloud/Infrastructure Services, IT services.

Hypothesis being tested

  • Telco 2.0 concepts and propositions are now starting to be deployed in different guises around the globe
  • Initial use cases suggest that the ‘value creation’ opportunity from Telco 2.0 falls into two categories: protection of existing revenues and creation of new revenues. In the short-term, the former is likely to be more important for the Telecoms industry with the latter becoming a significant revenue contributor in the medium term
  • Identifying and delivering a clear and focused proposition to specific customers is critical to the success of Telco 2.0 concepts
  • Collaboration outside telecoms is important for most Telco 2.0 concepts and many also require collaboration within the industry between operators in the same geographic region

Key questions to debate

  • How can operators apply Telco 2.0 principles to their current businesses and business models to prepare for the future?
  • What are the most lucrative proposition areas for operators? Who should these propositions be offered to?
  • When should operators adopt a go-it-alone strategy and when should they collaborate to deliver great value?

Presenters and Panelists
This major session is split into two: the first looking at strategy, the second looking at specific opportunities around ‘Cloud’. There will be up to 8 short stimulus presentations in this session, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’. (There will be a tea break at 4.30pm).

1345-1515: Part 1 - Stimulus Presenters & Panelists:

  • Stephanie Comfort, Chief Strategy Officer, Qwest

  • Ken Lee, Director of Product Marketing, Oracle

  • Patrick Kallaher, VP, Aricent

  • Crick Waters, EVP, BT Ribbit

Telco 2.0 background reading:

1515 Tea Break

 

1545 – 1715: Part 2 Presenters & Panelists:

  • Jay Wilpon, Executive Director, AT&T
  • Jeff Fedders, Strategic Marketing, Intel
  • Simon Aspinall, Director Service Providers, Cisco
  • Steve Mannel, Industry Director, Media & Communications, Salesforce.com

 

1715 Managing the co-opetition: Facing up to Facebook

Facebook is now the second highest ranking on Alexa globally and in the UK accounts for over half of all web pages downloaded on mobile. It is the de facto communications tool of choice for young people and has becoming increasingly popular among older generations. How will Facebook’s business model and service offering develop going forward and to what extent will the company be a partner to the Telecoms industry versus a competitor? 

Hypothesis being tested

  • Facebook’s growth is both a driver of mobile data traffic for operators and a future threat to core communications revenues
  • Facebook’s current business model of advertising and product sales is predicated on being the leading social communications site in terms of user numbers and attention. While its advertising business model potentially conflicts with Google, it is its free or (potentially) freemium communications services which could erode core operator voice and messaging revenues
  • The management of users’ directories and privacy is an increasingly important component of capturing user attention and communications-related revenue. Facebook has built a sophisticated directory and privacy service (although has attracted some negative attention regarding the latter in recent months)
  • Operators have opportunities individually and collectively to partner and compete with Facebook but must better understand the company’s strategy and strengths and weaknesses to do this effectively

Key questions to debate

  • How does Facebook currently generate value for users and revenues for shareholders and how might this change over time?
  • What are the threats to and opportunities for operators from Facebook?
  • What are the critical success factors for operators if they are to be successful in co-opetition with Facebook?
  • What should operators do individually and collectively to achieve their goals regarding Facebook?

Presenters and Panellists

Short stimulus presentations x 2, followed by discussion between, and feedback from, participants using our ‘Mindshare’ interactive technology, followed by a panel discussion, finishing with some voting on ‘next steps’.

Stimulus Presenters:

  • Chris Barraclough, Managing Director & Chief Strategist, Telco 2.0 Initiative
  • Hans Frederick, VP Marketing Solutions, ComScore

Panellists:

  • Jennifer Byrne, Director, Business Devt, Verizon Wireless
  • Hans Frederick, VP Marketing Solutions, ComScore
  • Chris Barraclough, Managing Director & Chief Strategist, Telco 2.0

Telco 2.0 background reading:

 

1830 Close & Drinks Reception